THE organised labour, led by the Nigeria Labour Congress (NLC) and Trade Union Congres (TUC), on Wednesday, rejected the planned increase in petrol price, saying it will vehemently resist the increment.
This came as the Federal Government announced that a new maximum pump price of petrol of N145 per litre came into effect from Wednesday.
The decision to jack up the price from N86.50 was reached after a meeting of stakeholders, presided over by Vice-President Yemi Osinbajo at the Presidential Villa, Abuja, on Wednesday.
Also in attendance at the meeting were the Minister of State for Petroleum Resources and Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Dr Ibe Kachikwu; leadership of the Senate and House of Representatives, leadership of the Nigeria Governors Forum (NGF), National Union of Petroleum and Natural Gas workers (NUPENG) and Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).
At the end of the meeting, Kachikwu briefed State House corespondents, explaining the rationale behind the increase.
He said the meeting reviewed the current fuel scarcity and supply difficulties in the country and the exorbitant prices being paid by Nigerians for the product, with prices ranging on the average from N150 to N250 per litre currently.
According to him, the meeting also noted that the main reason for the current problem was the inability of importers of petroleum products to source foreign exchange at the official rate, due to the massive decline of foreign exchange earnings of the Federal Government.
As a result, he said, private marketers had been unable to meet their approximate 50 per cent portion of total national supply of petrol.
The minister said following a detailed presentation by himself, it became obvious that the only option and course of action now open to the government was to take certain decisions.
According to him, in order to increase and stabilise the supply of the product, any Nigerian entity is now free to import petrol, subject to existing quality specifications and other guidelines issued by regulatory agencies, adding that all oil marketers would be allowed to import petrol on the basis of forex procured from secondary sources.
He said the Petroleum Products Pricing Regulatory Agency (PPPRA) template would reflect this in the pricing of the product.
“We expect that this new policy will lead to improved supply and competition and eventually drive down pump prices, as we have experienced with diesel.
“In addition, this will also lead to increased product availability and encourage investments in refineries and other parts of the downstream sector,” Kachikwu said.
Confirming the new price, PPPRA, on Wednesday, officially announced the new price band for petrol at N145 per litre.
It also advised the NNPC retail stations on the outskirts of major cities to sell at price lower than N145 per litre.
Executive Secretary of the agency, Sotonye Iyoyo, in a press statement, a copy of which was made available to the Nigerian Tribune in Abuja, on Wednesday, said the review became imperative in the face of extreme difficulties faced by petroleum product importers in sourcing foreign exchange.
Speaking with the Nigerian Tribune on Wednesday evening, however, both the NLC president, Comrade Ayuba Wabba, and the TUC president, Comrade Bobboi Kaigama, in separate interviews, said they had called the emergency meeting of their relevant organs to take a prompt decision on the issue.
In his response, Wabba said: “we reject it. We are going to convey emergency meeting of our National Executive Council (NEC). Look at the economic situation, workers and Nigerians cannot afford it.
“The workers have not been receiving their salaries regularly. We have not even resolved the issue of electricity tariff. Nigerians cannot afford foods on their table and now, we are talking about another increase in fuel price,” he said.
Also, the TUC president, Kaigama, said the Federal Government caught them unawares with the sudden increase, adding that labour rejected it in totality.
“They caught us unawares. We are going to summon emergency organs meeting of the TUC to address the matter. We will come out with our position. I believe and hope the NLC will hold same. We will then come together to make a force and present our position and plans to workers and Nigerians,” he said.
Comrade Joe Ajaero, factional president of NLC, told the Nigerian Tribune on Wednesday that removing subsidy without fulfilling the agreement reached with the unions was betrayal.
“We shall be mobilising Nigerian workers and masses to resist this. Government must keep its promises to Nigerian people and end this increasing angst and deprivation in the country.
“We do not see in this budget any attempt to immediately boost local refining capacity either by ensuring a quick turn around maintenance (TAM) on the existing refineries or by establishing new refineries as promised during last year’s elections,” he said.
Minister of Labour and Employment, Senator Chris Ngige, had earlier said on Wednesday that the Federal Government was to engage the organised labour over the planned implementation of the deregulation policy in the downstream oil sector of the Nigerian economy.
Ngige, who spoke with journalists at a strategic planning workshop organised by the Organisation of Trade Union of West Africa (OTUWA) in Abuja, assured Nigerians that implementation of the policy would not resort to labour crisis and unrest.
Executive Secretary, Major Oil Marketers Association of Nigeria (MOMAN), Mr Obafemi Olawore, however, supported the decision to remove subsidy, calling it the right step in liberating the downstream sector.
“It is a step towards deregulation. At MOMAN, we support full deregulation,” he said.
Ekiti State governor, Mr Ayodele Fayose, condemned the increment of petrol price from N86.50 to N145, describing it as insensitive and demonstration of the level of hatred the Mohammadu Buhari-led government had for Nigerians.
The governor, who said the over 70 per cent increment was another vindication of his predictions on what to expect in 2016, added that it was now clear that the scarcity of petrol being experienced in the last three months was deliberately orchestrated by the Federal Government to pave way for the already conceived increment.
According to his Special Assistant on Public Communications and New Media, Lere Olayinka, Governor Fayose said “Nigerians are now left at the mercy of political liars who took over power by deception and are governing by deceit.”
He said he was waiting for the reaction of those who took to the streets to protest when fuel subsidy was removed by the Dr Goodluck Jonathan-led administration in 2012, urging labour unions in the country to stand by their members always, not minding the political party in government.
“When they were seeking for votes from Nigerians, they promised to reduce petrol pump price to from N87 to N45 per litre, they promised to create three million jobs per year, they said $1 will be equal to N1 and above all, they promised to pay unemployed youths N5,000 stipend and provide one meal a day to pupils nationwide.
“Instead of fulfilling their promises, they have increased petrol pump price to N145 per litre, increased electricity tariffs, retrenched thousands of workers and imposed untold hardships on Nigerians.
“As they did in 2012, if labour leaders do not also stand up for the people at this time, posterity will not forgive them,” he said.
Agoro expresses disgust
Also, former presidential candidate of National Action Council (NAC), Dr Olapade Agoro, expressed disgust at the decision of the Federal Government to remove fuel subsidy and its attendant increase in the pump price of fuel.
He described the recent development as a defiance of the promised change of the Buhari-led administration, which had made lives of common masses more difficult.
Agoro bemoaned that state governments had also added to the misery of Nigerians by not paying salaries.
“It is unexpected for President Buhari, who promised change, to continue to make life difficult for the common masses. The rich may afford the increased pump price but this development is so bad for many Nigerians. State governments also add to the pain of Nigerians,” he said.
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